We have seen in detail what perceptual map is all about and its various applications.
Having chosen the Fashion Industry segment, the sector as it is an evergreen and still booming sector. Fashion is a segment where perceptions and opinions play a major role in determining the sales figures . Understanding the complexity associated with the different attributes and brands can be made easier by developing a visual representation of each market. These are known as perceptual maps and they are used to determine how various brands are perceived according to the key attributes that customers value. In addition, it is possible to determine and map how customers see an ideal brand, based on the key attributes, and from this see how far away a brand is from occupying the ideal position.
Understanding the complexity associated with the different attributes and brands can be made easier by developing a visual representation of each market. These are known as perceptual maps and they are used to determine how various brands are perceived according to the key attributes that customers value. In addition, it is possible to determine and map how customers see an ideal brand, based on the key attributes, and from this see how far away a brand is from occupying the ideal position.
Perceptual mapping represents a geometric comparison of how competing products are perceived (Sinclair and Stalling, 1990). One thing to note is that the closer products/brands are clustered together on a perceptual map, the greater the competition. The further apart the positions, the greater the opportunity for new brands to enter the market, simply because the competition is less intense. For example, in fashion retailing there are numerous brands in the marketplace all competing with each other across differing core attributes, brand reputation, store presence, price, and clothing quality or trendy and stylish. To show how the differing brands might be positioned relative to each other using the attribute scores for each brand of fashion retailer we can measure and map the brand positioning for the respective brands. Figure below shows the positioning of a number of fashion retailers using the dimensions of price, store presence, and trendy and stylish.
Given the distance between the differing brands on the perceptual map,
Figure below shows us that there is a relatively high level of differentiation in brand positioning between the retailing brands Invogue and Fast Fashion. However, in contrast there is a low level of differentiation between Budget Fashion and Just Fashion. Given the distance of the differing brands from each attribute, Figure below also shows us that Invogue and Ladies Manor are more closely associated with the attribute of trendy and stylish; Budget Fashion, Just Fashion, and the Clothing Superstore with the attributes of price and value for money; and Stephanie’s and Fast Fashion with the attributes of in-store service, opening hours, and store convenience.
Determining attribute importance and mapping the brands across these attributes, we can discover how our brand and competing brands are perceived in the marketplace.
It is very rare that using just two attributes adequately reflects the diversity of opinion and preferences of the target market. Using multidimensional scaling techniques it is possible to add further attributes and create a composite picture of the main segments that constitute a market.
Perceptual mapping can provide significant insight into how a market operates.
For example, it provides marketers with an insight into how their brands are perceived and it also provides a view about how their competitors’ brands are perceived. In addition to this substitute products can be uncovered, based on their closeness to each other (Day et al., 1979). All of the data reveal strengths and weaknesses that in turn can assist strategic decisions about how to differentiate on the attributes that matter to customers and how to compete more effectively in the target market.
Source: http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf
Himanshu Arora
Roll - 12024
Marketing Batch 2009 - 11
